The components of physical distribution are given below –

Order processing - It includes receiving order, recording it, fulfilling the order, executing or assembling the products for dispatch and finally credit and collection.

Warehousing - It facilitates both continuous production and continuous marketing and contributes to customer satisfaction. It adds place utility and time utility.

Transportation - It is the main component of distribution system which involves transporting the product from the place of production to the place of use.

Maintenance of inventory - The distribution firms maintain proper inventory so as to ensure the timely supply.